On over-recoveries and refunds

by Francis Saturnino Juan

The Energy Regulatory Commission (ERC) announced recently that it ordered Meralco to refund its consumers the total amount of PhP19.95 billion representing “Meralco’s over-recovery of rates for the lapsed period from 01 July 2022 to 31 December 2024.” In a decision split 3-2, the ERC directed Meralco to return this over-recovery by decreasing its distribution charges by PhP0.1189 per kilowatt-hour (kWh) across all customer categories of the distribution utility over three years, or until the entire PhP19.95 billion is refunded. In response to this announcement, NASECORE, a consumer group led by former DOE Undersecretary Pete Ilagan, expressed that the decision favors Meralco and is detrimental to consumers, especially residential customers who face higher distribution charges compared to other customer categories. The group suggested an immediate audit of Meralco’s over-recovery and a full refund of the PhP19.95 billion, rather than spreading it over three years.

As a Meralco customer, I am pleased with any forthcoming rate reductions. However, I am frustrated that over the years, the ERC has permitted Meralco to implement interim distribution charges instead of fixed and final rates. This has allowed Meralco to collect more from its customers than it would have if the distribution charges had been pre-approved by the ERC, rather than relying on the current and legally questionable “lapsed period rate regulation,” which is tantamount to retroactive rate-making. This approach has led to various uncertainties and inequities, some of which NASECORE has highlighted. Despite the ERC’s recent refund order, the harm to all Meralco consumers, both large and small, has already been inflicted, and Meralco has already benefited from additional free cash to support its past operations.

Why has the situation arisen where Meralco is periodically required to refund billions of pesos based on the ERC’s true-up calculation of its “Actual Weighted Average Tariff (AWAT) compared to the Approved Final Distribution Rate Implemented During the Lapsed Period?” The explanation is straightforward – over the last decade or so, the ERC has not managed to conduct, finalize, and issue a conclusive rate-reset decision or Final Determination on Meralco’s rates. Had this been done, the concept of “lapsed period rate regulation” would not have been invented. Consequently, there would have been no over-recoveries in the implementation of Meralco’s distribution rates during the lapsed period, and no necessity for any refunds.

To be fair, the situation is not unique to Meralco. All other private distribution utilities (DUs) under performance-based rate-making face the same dilemma. Worse for them, rather, their customers, there seems to have been no urgency for them disclose and update all of their distribution charge over-recoveries to ERC and for ERC to direct them, similar to Meralco, to already implement their own refunds.

Over-recoveries and refunds are not gifts from the ERC to us, the consumers. Whether the refund is given all at once, as NASECORE suggests, or spread over three years, as decided by the 3-2 ERC majority, the PhP19.95 billion refund Order is a reminder of the ERC’s failure to effectively and timely regulate distribution tariffs, not only for Meralco but for all DUs, including all the Electric Cooperatives, across the country. Instead of celebrating the refund Order or debating the length of the refund period, we should collectively demand an improved system of distribution rate regulation that altogether eliminates the occasion and need for over-recoveries and refunds.

UN DESA VOICE APRIL 2025

MONTHLY NEWSLETTER, VOL. 29, NO. 4 – APRIL 2025

Partnering with youth to shape our sustainable future together

“We have witnessed how youth can mobilize global action,” said UN DESA’s Under-Secretary-General Li Junhua, stressing the importance of young people’s involvement in shaping a future that is more inclusive, peaceful, sustainable and fair. “Young people [are] showing up, contributing their skills, expertise, ideas and energy to solve the pressing challenges we are facing today so that future generations are better off,” Mr. Li said.

Mr. Li’s message was delivered to a room filled with youth leaders who had gathered for the 2024 edition of the Economic and Social Council (ECOSOC) Youth Forum. Now it’s that time of the year again, when UN Headquarters will open its doors to young people from across the world, inviting them to be part of negotiations and actions that will help the world deliver a more sustainable future, that benefits us all.

Stressing how ECOSOC aims to put inclusivity front and center, its President, Ambassador Bob Rae (Canada), is emphasizing: “We bring together actors across different sectors to identify and commit to action that is going to be transformative and can have a tangible impact in countries and communities. […] I am committed to ensuring that we are leveraging these opportunities in an inclusive manner to promote action, ambition, innovation and engagement.”

As the world faces multiple crises, the demand for global solidarity and action is urgent. Described as the largest UN annual gathering of young people, the annual ECOSOC Youth Forum invites youth leaders to participate in discussions that will impact the future of their generation, and generations to come.

“Young people – young experts – need to be engaged in all the challenges that humanity faces today,” said Mr. Li Junhua. And the need has never been greater.

Taking place on 15-17 April 2025 at the United Nations Headquarters in New York, young people will work side-by-side with high-level UN officials and government representatives, delving into a range of pressing issues. The Sustainable Development Goals (SDGs) under review at the 2025 High-level Political Forum (HLPF) on Sustainable Development will also be in focus at this year’s event.

Youth will be able to share their perspectives on good health and well-being (SDG 3), gender equality (SDG 5), decent work and economic growth (SDG 8), life below water (SDG 14), and partnerships for the goals (SDG 17). By emphasizing science- and evidence-based solutions, the Forum will also encourage innovative and data-driven approaches to addressing today’s most urgent challenges.

Young people will also be part of deliberations related to major conferences taking place this year, including the UN Ocean Conference, the Fourth International Conference on Financing for Development and the Second World Summit for Social Development. Youth voices will thus be heard in many ways and on diverse topics critical to sustainable development.

For more information: 2025 ECOSOC Youth Forum

Expert Voices

Indigenous Peoples spearhead action to claim their rights

Later this month, the 24th session of the United Nations Permanent Forum on Indigenous Issues (UNPFII) kicks off at UN Headquarters in New York, bringing together Indigenous Peoples, government representatives, UN agencies and civil society from around the world. Ahead of the session, we spoke with Ms. Hindou Oumarou Ibrahim, Chair of UNPFII, about key developments and issues related to Indigenous Peoples and their rights.

In 2007, the UN General Assembly adopted the UN Declaration on the Rights of Indigenous Peoples. Where do we stand on its realization around the world?

“The UN Declaration on the Rights of Indigenous Peoples (UNDRIP) adopted in 2007, has significantly influenced global policies, but its full realization remains uneven. Some States have incorporated its principles into laws, supporting land rights, self-determination and cultural preservation. However, many Indigenous Peoples still face land dispossession, discrimination and violence. Implementation challenges stem from political resistance, economic interests and legal barriers. One of the main problems continues to be the recognition of Indigenous Peoples by some Member States. While international bodies and advocacy groups push for stronger enforcement, Indigenous Peoples continue to lead efforts for their rights. Progress varies, but UNDRIP remains a vital framework for advancing Indigenous Peoples’ rights worldwide.”

With the many crises around the world such as climate change and biodiversity loss, what are some of the biggest challenges that Indigenous Peoples face? How can Indigenous Peoples’ knowledge and practices contribute to environmental protection, climate adaptation and mitigation?

“Indigenous Peoples are guardians and stewards of Nature. We possess the knowledge of our lands, territories and environments. This knowledge is not theoretical; it has been tried and tested since time immemorial and for many generations. As Indigenous Peoples, we are dependent and interconnected with Mother Earth and vice versa. So, when the environment is impacted by the effects of climate change, Indigenous Peoples are directly impacted, as climate change affects our livelihoods, our food sovereignty, our cultures and traditions and our ability to live on our ancestral lands. At the same time, the world needs to listen to Indigenous Peoples, as we have solutions and knowledge. Through supporting Indigenous Peoples and ensuring their voices are included in important dialogues and decision-making on biodiversity and climate change, as well as ensuring that financial resources is provided directly to Indigenous Peoples, we can work together to mitigate climate change for all.”

In what ways does the UNPFII address the unique challenges faced by Indigenous women and girls?

“The UNPFII has always served as a critical platform to amplify the already strong voices of Indigenous women and girls. Indigenous women and girls face intersectional discrimination, because their gender and their identity as Indigenous Peoples. With this intersectionality in mind, Indigenous women and girls face marginalization in many facets of their lives, including economic, political and social development, culture, environment, education, health and human rights.

However, Indigenous women are essential to society – we possess unique knowledge, transmit this knowledge, culture and traditions and are critical leaders in our own communities and families. Over the two decades since the UNPFII was established, through the Forum as well as beyond the halls of the United Nations, Indigenous women and girls have advocated to secure their rights. This has resulted in achievements such as the realization of the United Nations Declaration on the Rights of Indigenous Peoples, the ILO Convention 169 and more recently, the adoption of General Recommendation No. 39 of the Convention on the Elimination of All Forms of Discrimination Again Women (CEDAW), which provides an important tool to advance the implementation of Indigenous women’s rights and should be integrated into this broader discussion.”

For more information: UN Permanent Forum on Indigenous Peoples

Photo credit: AFPAT.

Things You Need To Know

5 things you should know about financing for sustainable development

Financing is the fuel of development. With adequate financing, the world can tackle poverty, inequalities, hunger, education, and the climate crisis. Yet, the world faces a stark financing divide and shrinking fiscal space. Here are 5 things you should know about financing for sustainable development.

1. Sustainable development is a good investment

Investment in sustainable development is good value for money. For example, every $1 invested in girls’ education can generate a $2.80 return. Every $1 invested in water and sanitation can reduce health care costs by $4.30.

2. Financing gaps are large and growing

The SDG financing gap – an estimated $4 trillion shortfall in annual investment – has never been so large. This is up from an estimated $2.5 trillion in 2019.

3. Developing countries are facing high debt burdens that crowd out other spending

In 2023, developing countries spent a record $1.4 trillion to service their foreign debt. Around 3.3 billion people live in countries that spend more on debt interest payments than on health or education.

4. The international financial architecture needs urgent changes to ensure affordable access to finance

Many developing countries can’t access finance at affordable rates, especially during times of crisis. On average, developing countries face borrowing costs that are two to four times higher than developed countries pay.

5. The fourth International Conference on Financing for Development (FFD4) is a once-in-a-decade opportunity for change

In June, world leaders will come together at FFD4 in Sevilla, Spain to take action to deliver an SDG investment push. They will also work on reforming the international financial architecture to enable the transformative change that the world urgently needs. FFD4 will showcase the power of multilateral cooperation to tackle these global challenges, which far exceed the capacity of any single country to respond to.

In the lead up to FFD4 in Sevilla, follow the ECOSOC Financing for Development Forum (28-29 April), and the Fourth Preparatory Committee Session (30 April-1 May).

Learn more and stay updated on the road to Sevilla and the FFD4 Conference.

Photo credit: UN DESA/Helen Rosengren.

MORE FROM UN DESA

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UN DESA VOICE MARCH 2025

MONTHLY NEWSLETTER, VOL. 29, NO. 3 – MARCH 2025

Statisticians come together with a shared vision to secure trusted data

“Data are critically important for everyone,” says Stefan Schweinfest, Director of UN DESA’s Statistics Division. “All the decisions that you take in your life, you’re basing them on data,” he stressed, as we spoke on the important work of the UN Statistical Commission. On 4-7 March 2025, some 600 statisticians from across the world will come together at UN Headquarters in New York to ensure better data, better lives.

From everyday choices – what clothes to wear based on temperature data; or what route to take when commuting; to informing decisions that matter for improving peoples’ lives – it is all based on data. “You need to know how many people you have in your country and what groups you have to take particular care of,” Mr. Schweinfest said, explaining the importance of data in managing services like health care and education.

Commission to focus on two big topics this year

A veteran in the statistical community, we met Mr. Schweinfest on the eve of the Commission’s 56th session. He shared that two big topics will be addressed this year – the 2025 Systems of National Accounts, and the 2030 World Population and Housing Census Programme.

“We will adopt a new system of national accounts,” he explained, describing its most recognized element, the Gross Domestic Product (GDP). “The system of national accounts is the guidebook to measure your economy the same way, whether you are in Mongolia or in Paraguay,” he said, noting that using the same statistical language enables countries to successfully exchange information and experiences.

“Every decade, the United Nations calls and declares a census round,” Mr. Schweinfest continued, describing the process of countries committing to counting their people. The census will help the international community better understand where people live and what their living conditions are, which later forms the basis for policy advice and decisions. “At the end, we will have good numbers for all of the countries and the whole world,” he explained.

Combining census data with economic trends

Mr. Schweinfest also outlined the possibilities when pairing census data with economic trends.

“With the system of national accounts, you understand where income is generated, which activities generate income and how the income is distributed in your population,” he said. He also described how this process can help countries intervene when needed to make sure that the well-being of people as well as the environment are protected.

Mr. Schweinfest also emphasized that the work on going beyond GDP to make nature count, is part of ongoing efforts in the statistical community, integrating economic and environmental accounting.

How data helps advance sustainable development

“I’m very proud of the statistical community,” Mr. Schweinfest said, as we discussed the role the statistical community plays in advancing sustainable development and the Sustainable Development Goals (SDGs).

“I think the deliberate decision in 2015 was to make the development agenda an accountability framework. That’s why it was structured in goals, targets and indicators. And whilst the goals and targets obviously come from the political sphere, the indicators were really managed in this room,” he said, describing how these 240 indicators help the international community measure and assess SDG progress every year.

A professional community of solidarity, with a shared vision

As the UN Statistical Commission comes together this month, it will also discuss other important matters including the Fundamental Principles of Official Statistics, SDG indicators, environment and climate change statistics, environmental-economic accounting, household surveys, economic statistics, and many more topics.

Mr. Schweinfest described the privilege he feels, being part of the Commission’s work. “To look at this room full of people who’ve come to […] discuss these topics, that is always a fantastic feeling,” he said. “I look at us as a community of solidarity, a professional community with a shared vision,” he continued, stressing that it is all about ensuring data quality and reliability.

He also looked back at some major developments of the Commission’s work over the past 36 years. “It is a much bigger Commission,” he explained, sharing how there are many more countries participating. “Nowadays we have sessions with 120 and 140 countries […]. It has also become much bigger and broader in terms of topics,” he said, highlighting integrated economic and environmental statistics, as well as human rights and governance statistics, as some of the new areas covered by the Commission.

Mr. Schweinfest also highlighted that there are more interesting data sources these days, including private sector data, big data, citizen reported data, geographical and geospatial data.

As we wrapped up our interview in Conference Room 4 at UN Headquarters, or the Commission’s “natural habitat”, as Mr. Schweinfest described it, he concluded, “I’ve always considered that this is the best job in the universe.”

Be sure to follow Mr. Schweinfest and the action at the 56th Session of the UN Statistical Commission by tuning in to UN Web TV on 4-7 March 2025.

EXPERT VOICES

How the Development Cooperation Forum delivers SDG impact

This month, the Development Cooperation Forum (DCF) will come together to discuss global financial architecture reforms and financing the Sustainable Development Goals (SDGs). Ahead of the event, we spoke with Shari Spiegel, Director of UN DESA Financing for Sustainable Development Office, who highlighted the Forum’s significance in shaping international development cooperation and accelerating progress toward the goals.

What role does the Forum play in supporting other significant milestones for 2025?

“The DCF is particularly crucial this year as it will inform the 4th International Conference on Financing for Development and the 2025 High-Level Political Forum—especially discussions on strengthening global financial architecture reforms and enhancing the means of implementations of the SDGs. More than just a policy dialogue, the 2025 DCF presents a key opportunity to ensure development cooperation delivers real, measurable results in line with country needs and priorities.”

What key issues will the Forum address this year?

“The 2025 Forum comes at a pivotal moment amid a lively global discourse on the importance of international development cooperation. With 600 million people still projected to live in extreme poverty by 2030 and an SDG financing gap of up to $4 trillion annually, discussions at the Forum will focus on making development cooperation more effective, inclusive, and responsive to country needs and priorities.

On day one, the Forum will explore how development cooperation can better respond to today’s challenges, balancing crisis response with long-term sustainable development. Discussions will also examine how development finance tools and instruments—such as grants, loans, and blended finance—can be adapted to better serve national development strategies. Strengthening country leadership and ownership in directing development efforts will also be a major theme.

On day two, the focus will shift to enhancing coordination among development partners, ensuring that cooperation is driven by national needs and priorities. The Forum will also explore ways to strengthen global and regional cooperation, making development efforts more cohesive and impactful.”

How does the Forum help advance the SDGs?

“A key discussion in the Forum will be how to ensure we advance all of the SDGs not just a select few, especially by balancing humanitarian aid with long-term development and climate adaptation. Experts will also address the growing fragmentation of development finance and strategies to ensure stronger collaboration across all actors.”

Learn more about the Development Cooperation Forum 2025, taking place on 12-13 March under the theme “Transforming International Development Cooperation: From Global Dialogue to Action,” here.

Things You Need To Know

5 reasons why the International Day of Forests matters

This year’s International Day of Forests highlights the vital role of forests in food security, nutrition, and sustainable livelihoods. This year’s theme, “Forests and Foods,” connects forests to global efforts to combat hunger, protect biodiversity, and address climate change. Here are 5 reasons why this year’s theme is so important.

1. Forests feed the world 

Forests provide a variety of edible resources, from fruits, nuts, and seeds to wild game and mushrooms. More than five billion people depend on forests and non-timber products for food, medicine, and income.

2. Forests are key to achieving zero hunger 

By sustaining pollinators, improving soil fertility, and regulating water cycles, forests enhance agricultural productivity. Agroforestry—a farming method that integrates trees and crops—can boost food security while preserving ecosystems.

3. Forest conservation is climate action 

Forests act as carbon sinks, absorbing billions of metric tonnes of CO₂ annually. Sustainable forest management helps mitigate climate change, protecting food systems from climate-related disasters like droughts and floods.

4. Forests maintain biodiversity and life on land 

Forests host 80% of terrestrial species, supporting ecosystems that sustain healthy, resilient food systems. Protecting forests is crucial for maintaining biodiversity, preventing land degradation, and securing food sources.

5. Forests support livelihoods and local economies 

Millions, especially Indigenous Peoples and rural communities, rely on forests for employment and income. Strengthening sustainable forest-based value chains—like non-timber forest products—improves economic resilience.

The International Day of Forests, observed annually on 21 March is led by the UN Forum on Forests Secretariat, UN DESA, and FAO to raise awareness and promote sustainable management, conservation and sustainable development of all forests and trees for present and future generations. This year’s International Day of Forests reminds us that forests and food are deeply interconnected.

Join the conversation using #ForestDay and help advocate for sustainable forest management and food security for all! You can also join the event at UN Headquarters in-person or through UN WebTV.

UN DESA Voice February 2025: Putting people at the centre of development

Monthly Newsletter, Vol. 29, No.2 -February 2025

Strengthening solidarity and inclusion for social development

30 years ago, world leaders united around a groundbreaking commitment to put people at the centre of development. At the World Summit for Social Development in Copenhagen, they pledged to eradicate poverty, promote social integration, and achieve full and productive employment for all.

Efforts to make this promise a reality continue. Every year at the Commission for Social Development, the international community gathers to accelerate the commitments made in the Copenhagen Declaration on Social Development, while addressing emerging global challenges.

This year’s session will convene from 10 to 14 February in New York under the theme: “Strengthening solidarity, social inclusion and social cohesion to accelerate the delivery of the commitments of the Copenhagen Declaration on Social Development and Programme of Action of the World Summit for Social Development as well as the implementation of the 2030 Agenda for Sustainable Development”.

High-level panels and side events will bring together UN Member States, civil society, and experts to identify actionable strategies for building equitable and united societies.

As we approach the Second World Summit for Social Development taking place on 4-6 November in Doha, this year’s Commission highlights the importance of strengthening solidarity and social inclusion to achieve more cohesive societies, placing people at the centre of development. It is a call for renewed cooperation to ensure that no one is left behind in the global pursuit of social progress, justice and sustainable development.

As 2025 marks the 30th Anniversary of the 1995 Copenhagen Declaration, the Summit in Doha represents a pivotal moment for the global community to renew the commitment to inclusion, equality, and sustainability. It will be a chance to come together for a more resilient world, where everyone is included.

For more information: 63rd Session of the Commission for Social Development

Expert Voices

“Partnering as equals in co-creating a better future”

Expert Voices

“We will not be able to make progress on the Sustainable Development Goals without […] a full sense of partnership,” said ECOSOC President Ambassador Bob Rae, as we spoke with him ahead of the 2025 ECOSOC Partnership Forum on 5 February at UN Headquarters in New York. “The actual implementation of most of the agenda of the United Nations depends on the deep engagement and commitment of civil society.”

What does partnership mean to you?

“I think it means everything. One of the key lessons that I’ve learned over my political and diplomatic life is how to work in collaboration with Member States, with civil society representatives, and all kinds of groups and people who want to engage. It is really at the heart of ECOSOC’s mission.

The UN Charter makes it clear that we are the institution that has the primary responsibility for engagement with civil society. The record shows that our key role reflects the presence of many civil society organizations in the drafting process of the of the Charter itself, and in the hopes that people had for the UN organization as a body that would be operating on a different basis and with a different approach than the League of Nations.

For me, partnership means recognizing the legitimacy and the equality of civil society groups who are coming to engage with the organization about the work of the organization, and about the challenges facing the world. The reality of life is that we could not possibly deal with these challenges without the full engagement of civil society, labor organizations, business communities, and all kinds of non-governmental organizations.”

What advice would you give to emerging leaders looking to create impactful collaborations?

“The first advice is to be aware of the extent to which civic life in every country is driven, not just by political parties and by governments, but also by businesses, labor organizations, civil society organizations of every kind. They are an essential part of the activities of the United Nations.

Take for example the Sustainable Development Goals. We will not be able to make progress on the SDGs without them, without everybody, without a full sense of partnership. And it’s not just a matter of States listening and then saying thank you, we’ll go off and do what we’re going to do. No, the actual implementation of most of the agenda of the United Nations depends on the deep engagement and commitment of civil society.”

How do you address the power dynamics that can arise in partnerships, particularly between developed and developing countries?

“We need to appreciate that we’re the product of the end of these two horrific global conflicts – World War I and World War II. We are also the product of the critically important process of decolonization. It’s fair to say that although political decolonization has occurred, the necessary changes in economic systems, social structures, cultural perspectives, and attitudes are still far from fully realized.

I think we need a full appreciation of what it means to be an equal member of the global community. As sovereign states, we are all equal, but we’re also equal as human beings, and we’re equal, as all of us have as much right to be at the table as anybody else.

The principle of global solidarity, the principle of global equality, the principle that we’re all here together as every nation state and every part of the world has an equal right to be here.”

What legacy do you hope to leave through your work in advancing partnerships for sustainable development?

“The ECOSOC year with real public engagement starts in February and lasts until July. During that period, we have a key opportunity to engage with civil society on some very important issues around the Sustainable Development Goals and how we can create more dynamism behind those goals. I think it’s critically important for us to really focus on the goals as the overarching theme of everything that we try to do.

Within those goals to emphasize a few things that matter for me. The issue of displacement and the issue of the impact of war and conflict and climate change on people, is something that we need to better understand. We have more people who are displaced and who are living in refugee camps of one kind or another around the world, than we’ve had since 1945. We have a greater human challenge here and sometimes we say, well, that’s a Geneva issue, it’s a UNHCR issue. No, it’s a global issue.

The other one is the impact of artificial intelligence as it is now clearly affecting our economies, our life, and our work. We’re just beginning to understand better how impactful the development of these new technologies is going to be on our countries.

As we navigate these shifts, it is essential to approach this in a spirit that reinforces the fundamental equality between men and women, and between all those who are working in the world, and that we need to break down barriers and sources of discrimination between us.

This mindset must guide us as we move from the Partnership Forum to more detailed and expert panels on tax matters, accountability and a whole range of other topics. It also underpins our engagement in milestone public events like the Commission on the Status of Women, the Permanent Forum on Indigenous Issues, the Youth Forum, the High-level Political Forum and […] some other events that are happening like the 4th International Conference on Financing for Development and the Second World Summit on Social Development in Doha.

These are all part of the ways of recommitting to the Pact for the Future and to the agreements that we made last year with respect to how we go forward.

One of the things that I learned during my work in government, is about the importance of making people feel that they are co-creating policy or co-creating legislation. How can we really commit as equals to co-create the progress we need to make? This is something that the Partnership Forum is all about. A meeting of partnership, based on a relationship between equals who are co-creating a better future.”

The 2025 ECOSOC Partnership Forum will focus on the 2025 ECOSOC and High-level Political Forum on Sustainable Development (HLPF) theme: “Advancing sustainable, inclusive, science- and evidence-based solutions for the 2030 Agenda for Sustainable Development and its Sustainable Development Goals for leaving no one behind,” placing a special emphasis on the Sustainable Development Goals (SDGs) that will be reviewed at the 2025 HLPF, namely Goal 3 (Good Health and Well-being); Goal 5 (Gender Equality); Goal 8 (Decent Work and Economic Growth); Goal 14 (Life Below Water); and Goal 17 (Partnerships for the Goals).

Follow the UN ECOSOC President on social media, via Instagram and X, and be sure to sign up for the ECOSOC Newsletter here.

Photo: UN Photo/Loey Felipe

Things You Need To Know

6 things you should know about the global economy in 2025

Promotional image for World Economic Situation and Prospects Report

“Let’s make 2025 the year we put the world on track for a prosperous and sustainable future,” urged UN Secretary-General António Guterres, as UN DESA released its global economic outlook last month in the World Economic Situation and Prospects 2025. Here are 6 things you should know about the global economy:

1. Global economic growth remains below the pre-pandemic average.
The report projects global economic growth to remain at 2.8 per cent in 2025, below the pre-pandemic average of 3.2 per cent. While easing inflation and monetary easing offer some respite, challenges such as trade tensions, geopolitical conflicts, and elevated debt burdens threaten the outlook.

2. Regional growth prospects vary widely.
East and South Asia will remain global growth drivers in 2025, with projected expansions of 4.7 per cent and 5.7 per cent respectively. Africa’s growth is forecast to improve slightly to 3.7 per cent but is restrained by high debt costs and climate-related challenges.

3. The outlook is precarious for many countries.
Many vulnerable economies are seeing downward revisions to their growth outlook, which remains well below pre-pandemic trends. This weak performance is compounding risks to achieving the Sustainable Development Goals, with progress in reducing poverty continuing to be slow and uneven.

4. Falling inflation creates room for monetary easing, though challenges persist.
Global inflation is projected to decline further, from 4 per cent in 2024 to 3.4 per cent in 2025, offering relief to households and businesses. However, many developing countries continue to grapple with elevated inflation, particularly in food prices.

5. Governments are adopting gradual fiscal consolidation to improve debt sustainability and rebuild fiscal space.
Fiscal pressures are particularly severe in Africa, where rising debt-servicing burdens are increasingly diverting resources away from essential public services and investment. On a GDP-weighted basis, African governments allocated 27 per cent of revenues to interest payments in 2024, up from 19 per cent in 2019 and 7 per cent in 2007.

6. Critical minerals play a vital role in advancing the energy transition and supporting sustainable development.
Resource-rich developing countries can benefit from rising global demand for critical minerals to create jobs and boost sustainable development. “Critical minerals have immense potential to accelerate sustainable development, but only if managed responsibly,” according to Li Junhua, UN Under-Secretary-General for Economic and Social Affairs.

Learn more in the World Economic Situation and Prospects 2025 here.

 

 

 

 

 

 

Masdar enters Philippines renewables market

ABU DHABI, 16th January, 2025 (WAM) — Abu Dhabi Future Energy Company PJSC – Masdar has announced its entry into the Philippines market, signing agreements with the government of the Philippines to develop 1 gigawatt (GW) of clean energy projects to strengthen its growing portfolio in Southeast Asia.

The Implementation Agreement with the Department of Energy and the Memorandum of Understanding with the Board of Investments of the Republic of the Philippines covers the development of solar, wind and battery energy storage systems (BESS) with a total capacity of up to 1GW by 2030.

The signing ceremony of both agreements was witnessed by Dr. Sultan Al Jaber, Minister of Industry and Advanced Technology and Chairman of Masdar, and Raphael P.M. Lotilla, Secretary of Energy of the Philippines.

The Implementation Agreement was signed by Undersecretary Dr. Rowena Cristina L. Guevara, Republic of the Philippines Department of Energy, and Masdar’s Chief Executive Officer, Mohamed Jameel Al Ramahi, with the MoU exchanged between the Ambassador of the Philippines to the UAE, Alfonso Ferdinand A. Ver, and Masdar’s CEO.

The agreement, which will support the Philippines Energy Transition Programme to achieve 35 percent renewable energy in power generation by 2030 and 50 percent by 2040, operationalises the MoU on Energy Transition Cooperation signed in November 2024 between the Philippines and the UAE during the working visit of Philippine President Ferdinand R. Marcos Jr. to the country, which identified renewable energy as an area of collaboration.

Dr. Al Jaber said, “This partnership marks a new chapter in the long-standing relationship between the UAE and the Philippines. By leveraging the UAE’s world-class expertise in renewable energy and the Philippines’ abundant natural resources, this agreement will create jobs, drive low-carbon socio-economic progress and expand global renewable energy capacity in line with the UAE Consensus.”

Lotilla commented, “Building on the long-standing ties between our nations and the recent Energy Transition Cooperation agreement, we welcome Masdar’s proven leadership and expertise in delivering utility-scale renewable energy solutions. This collaboration will significantly advance our goal of achieving 35 percent renewable energy in power generation by 2030.”

Secretary Lotilla further emphasised that the landmark partnership underscores the Philippines’ commitment to a clean energy future.

By integrating renewable energy into the country’s energy mix on an unprecedented scale, the Administration of President Marcos Jr. is enhancing energy security while laying a strong foundation for sustainable economic growth and environmental stewardship.

With Masdar’s support, the Philippines is setting a new benchmark for energy transition in the region.

Ceferino S. Rodolfo, Undersecretary at the Philippines Department of Trade and Industry and Board of Investments Managing Head, commented, “It is inspiring to witness the strengthening of the bilateral relations between our countries, following the visit of Philippine President Ferdinand R. Marcos to UAE last year and a series of reciprocal ministerial missions thereafter.

The partnership with Masdar is a testament to our mutual commitment to fostering a dynamic and sustainable economic future, and our shared vision for economic sustainability and prosperity. This aligns seamlessly with the Philippine strategy to position ourselves as a smart and sustainable hub for manufacturing and services in Southeast Asia.”

He added, “The Philippines is making significant strides in the renewable energy sector. Masdar’s own planned renewables projects will contribute to accelerating sustainable economic growth in the different regions in the Philippines, and will especially complement our infrastructure development initiatives within the Luzon Economic Corridor (LEC) — Subic Bay, Clark, Manila, and Batangas — which is being developed as an economic hub for commerce, industry, and logistics.

“The Department of Trade and Industry, through the Board of Investments, will be Masdar’s staunch partner. Together with Masdar, we give our unwavering commitment to fostering a greener and more resilient future for the Philippines.”

Al Ramahi welcomed the announcement as a significant expansion of Masdar’s activities in Southeast Asia, a key strategic market in its ongoing efforts to achieve a renewable energy capacity of 100GW by 2030.

“With our proven success in implementing large-scale renewable energy projects in the region and worldwide, we look forward to utilising our expertise and experience to support the Philippines in meeting its ambitious renewable energy goals,” he added.

The agreement marks Masdar’s entry into the renewables sector in the Philippines. Southeast Asia is a key investment destination for Masdar.

The company has developed the region’s largest floating solar facility in Indonesia – the 145MW Cirata Floating Solar PV plant – which is generating enough electricity to power 50,000 homes.

In February 2023, it entered the geothermal energy sector through a strategic investment in Pertamina Geothermal Energy.

Masdar also signed a landmark agreement with the Malaysian Investment Development Authority in 2023 for the development of 10GW of clean energy projects across the country.

By RM / ES

Read more here

International Day of Clean Energy 26 January

Solar energy is the most abundant of all energy resources and can even be harnessed in cloudy weather.
Photo:Raphael Pouget/UNICEF

Clean energy: for all…
Energy lies at the core of a double challenge: leaving no one behind and protecting the Planet. And clean energy is crucial to its solution.

In a world grappling with climate change, clean energy plays a vital role in reducing emissions, and can also benefit communities lacking access to reliable power sources. Still today, 685 million people live in the dark – more than 80 per cent of them in Sub-Saharan Africa.

The connection between clean energy, socio-economic development, and environmental sustainability is crucial in addressing issues faced by vulnerable communities worldwide.

For populations without clean energy access, the lack of reliable power hinders education, healthcare, and economic opportunities, and many of these developing regions still rely heavily on polluting fossil fuels for their daily life, perpetuating poverty. If current trends continue, by 2030 around 1.8 billion people will still use unsafe, unhealthy and inefficient cooking systems, such as burning wood or dung.

Although this situation has generally been improving, the most recent figures show that the number of people without electricity actually increased by 10 million in 2022, as population growth outpaced progress. The world is not on track to achieve Sustainable Development Goal 7 (SDG7), which aims to ensure access to affordable, reliable, sustainable and modern energy for all by 2030.

… and for our planet
But adopting clean energy is integral to the fight against climate change, as well.

A large chunk of the greenhouse gases that blanket the Earth and trap the Sun’s heat are generated through energy production, by burning fossil fuels (oil, coal, and gas) to generate electricity and heat.

The science is clear: to limit climate change, we need to end our reliance on fossil fuels and invest in alternative sources of energy that are clean, accessible, affordable, sustainable, and reliable. Renewable energy sources – which are available in abundance all around us, provided by the sun, wind, water, waste, and heat from the Earth – are replenished by nature and emit little to no greenhouse gases or pollutants into the air.

At the same time, improving energy efficiency is key. Using less energy for the same output – through more efficient technologies in the transport, building, lighting, and appliances sectors for instance: saves money, cuts down on carbon pollution, and helps ensure universal access to sustainable energy for all.

Background

The International Day of Clean Energy on 26 January was declared by the General Assembly (resolution A/77/327) as a call to raise awareness and mobilize action for a just and inclusive transition to clean energy for the benefit of people and the planet.

26 January is also the founding date of the International Renewable Energy Agency (IRENA), a global intergovernmental agency established in 2009 to support countries in their energy transitions, serve as a platform for international cooperation, and provide data and analyses on clean energy technology, innovation, policy, finance and investment.

Did you know?
Coal, oil, and gas (fossil fuels) are responsible for nearly 90% of global carbon dioxide emissions.
Scientists emphasize the need to cut emissions by almost half by 2030 and achieve net-zero by 2050 to avoid the worst impacts of climate change.
Fossil fuels still dominate global energy production, but renewable sources of energy, such as wind, solar, hydro, and geothermal, now power about 29% of electricity worldwide.

 

Read more here: https://www.un.org/en/observances/clean-energy-d